A BILL to amend and reenact §11-24-3 of the Code of West Virginia,
1931, as amended, relating to updating the meaning of “federal
taxable income” and certain other terms used in the West
Virginia Corporation Net Income Tax Act so the definitions
conform with the Internal Revenue Code's definitions; and
specifying effective dates.

Be it enacted by the Legislature of West Virginia:

That §11-24-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:

ARTICLE 24. CORPORATION NET INCOME TAX.

§11-24-3. Meaning of terms; general rule.

(a) Any term used in this article has the same meaning as when
used in a comparable context in the laws of the United States
relating to federal income taxes, unless a different meaning is
clearly required by the context or by definition in this article.
Any reference in this article to the laws of the United States
means the provisions of the Internal Revenue Code of 1986, as
amended, and any other provisions of the laws of the United States
that relate to the determination of income for federal income tax
purposes. All amendments made to the laws of the United States
after December 31, 2010,January 1, 2012, but prior to January 1,
2012,3, 2013, shall be given effect in determining the taxes
imposed by this article to the same extent those changes are
allowed for federal income tax purposes, whether the changes are
retroactive or prospective, but no amendment to the laws of the
United States made on or after January 1, 2012,3, 2013, shall be
given any effect.

(b) The term "Internal Revenue Code of 1986" means the
Internal Revenue Code of the United States enacted by the federal
Tax Reform Act of 1986 and includes the provisions of law formerly
known as the Internal Revenue Code of 1954, as amended, and in
effect when the federal Tax Reform Act of 1986 was enacted that
were not amended or repealed by the federal Tax Reform Act of 1986.
Except when inappropriate, any reference in any law, executive
order or other document:

(1) To the Internal Revenue Code of 1954 includes a reference
to the Internal Revenue Code of 1986; and

(2) To the Internal Revenue Code of 1986 includes a reference
to the provisions of law formerly known as the Internal Revenue
Code of 1954.

(c) Effective date. – The amendments to this section enacted
in the year 20122013 are retroactive to the extent allowable under
federal income tax law. With respect to taxable years that began
prior to January 1, 2013,2014, the law in effect for each of those
years shall be fully preserved as to that year, except as provided
in this section.

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(NOTE: The purpose of this bill is to update the meaning of
"federal taxable income" and certain other terms in the West
Virginia Corporation Net Income Tax Act by bringing them into
conformity with their meaning for Internal Revenue Code's
definitions.

Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.)